Yingli Green Energy Announces Key Takeaways from Investor Day Hosted at Its Baoding Headquarters

BAODING, China, Nov. 3, 2010 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers, which markets its products under the brand "Yingli Solar," today announced key takeaways from the investor day hosted at its Baoding Headquarters on November 3rd, 2010.

Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy, delivered the opening remarks to express the Company's welcome to all the investors and analysts. Then Mr. Zongwei Li, Director and Chief Financial Officer of Yingli Green Energy, made a presentation to highlight the Company's long-term position in the solar industry, basing on its competitive vertically integrated business model, one of the lowest cost structures in the industry, active innovation along the entire value chain of PV production and highly-recognized and bankable brand. Meanwhile, Mr. Li commented on the key topics for the industry developments and trends in 2011, in such areas as market demand, average selling price and polysilicon supply. At the end of his presentation, Mr. Li provided an upbeat comment on the company's financial outlook for the third quarter of 2010 and the full year 2010. Mr. Zongwei Li's presentation slides will be made available in the "Investor Relations" section of the Company's website at 8 PM EST today.

During the event, members of Yingli Green Energy' senior management team made presentations on a range of subjects and delivered the following key takeaways messages:

Mr. Zongwei Li, Director and Chief Financial Officer of Yingli Green Energy:

The Company has secured 575 MW of purchase under legally binding sales contracts as of October 30, 2010 and expects to increase this figure to 1,000 MW by the end of this year. Majority of these sales contracts require prepayment from customers. Benefited from the robust demand from major solar market, the Company sees a flattish trend of average selling price in the fourth quarter of 2010, and expects a stable level in the first half of 2011 and a moderate decrease in the second half of 2011. For the geographies of shipments in 2011, the Company expects to increase shipments to new and emerging markets, such as South Europe, U.S., and China.  

Meanwhile, the Company has now secured more than 60% of its expected polysilicon needs for 2011 through long-term contracts and in-house polysilicon production, and expects to increase this figure to approximately 70% by the end of this year.  

The Company expects a mid-20% increase in shipments quarter over quarter in the third quarter of 2010, in line with its previous estimates. With better than expected average selling price and improving operating efficiency of its new 400 MW production lines, the Company is confident in achieving a 31% to 32% gross margin in the third quarter of 2010, compared to the previous estimated range of 28% to 30%.

Based on the strong performance in the first three quarters of 2010 and more clear visibility for the fourth quarter, the Company expects its gross margin for 2010 to reach 31% to 32%, compared to the previous estimated range of 28% to 30%."

Mr. Stuart Brannigan, Managing Director of Yingli Green Energy Europe GmbH ("Yingli Green Energy Europe"):

The discussion centered on the fact that Europe remains a very strong and key component of the global PV market. More and more diversified European markets are emerging, driven by the EU's commitment to delivering its 2020 Renewable energy targets. The national renewable energy action plans are required to be presented to the EU before the end of 2010. So far 19 EU member states have submitted such plans and the total cumulative PV installations required to meet these 2020 energy targets exceeds 80 GW. This equates to only 2.7% of the energy demand, the EPIA is lobbying for a minimum of 4% of energy demand and so the company sees the possibility of upside to this. The Company sees a significant move in types of installations from the larger scale to smaller and more individualized commercial and residential systems, not only in Germany but also in other countries across Europe, which is driven by the reduction and refinement of feed-in tariffs. The Company believes that the investments it has made in brand building over the last few years will benefit its market expansion in light of the changing market conditions.  

Mr. Robert Petrina, Managing Director of Yingli Green Energy Americas, Inc. (Yingli Americas):

Sales initiatives and market trends in the U.S. were discussed, including Yingli Green Energy's highly regarded quality and brand advantages as one of the largest vertically integrated photovoltaic manufacturers. Yingli America is one of the fastest growing PV suppliers in the Americas, a position is has achieved through building a comprehensive sales and service network, as well as its focus on partnering, not competing, with its customers.  Mr. Petrina shared examples of the Company's successes across the various market segments and emphasized the Company's growing penetration of the fast growing utility segment. Yingli Americas expects to exit 2010 with an approximately 10% market share and anticipates achieving a similar or better level in 2011.    

Mr. Jingfeng Xiong, Vice President of Technology of Yingli Green Energy

Mr. Xiong gave a brief introduction to the Company's cell efficiency roadmap and relevant technology developments. The Company expects to increase conversion efficiency of its mono-crystalline cell to 20% in 2012 and 22% in 2015 through several cutting-edge technologies, including those development in the PANDA project, N-type metal-wrap-through ("N-MWT") and Heterojunction with Intrinsic Thin-layer ("HIT") cell technology.

Mr. Xiong also unveiled the Company's roadmap for multi-crystalline cell conversion efficiency, which is expected to reach 17.5% in 2011, 18% in 2012 and 20% in 2015.

Mr. Yuehe Zhang, General Manager of Fine Silicon CO., Ltd.

Using the advanced monosilicon-based technology and closed-loop manufacturing process, Fine Silicon has built a competitive edge with the significant electricity savings and low environmental impact compared to the trichlorosilane ("TCS")-based polysilicon manufacturing technology. Mr. Zhang also reaffirmed cost roadmap of Fine Silicon, which is expected to reach the $30/kg level in late 2011 and further go down below $30/kg in a long term.

About Yingli Green Energy

Yingli Green Energy Holding Company Limited (NYSE: YGE), which markets its products under the brand "Yingli Solar", is a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers. Yingli Green Energy's manufacturing covers the entire photovoltaic value chain, from the production of polysilicon through ingot casting and wafering, to solar cell production and module assembly. Currently, Yingli Green Energy maintains a balanced production capacity of 1 GW per year. Two capacity expansion projects of 600 MW and 100 MW are under construction in Baoding and Hainan, respectively, are expected to start initial production since the middle of 2011 and increase the Company's total capacity to 1.7 GW. In addition, Yingli Green Energy's in-house polysilicon plant, Fine Silicon, which has a designed annual production capacity of 3,000 metric tons, has successfully started commercial operation in early August 2010. Yingli Green Energy distributes its photovoltaic modules to a wide range of markets, including Germany, Spain, Italy, Greece, France, South Korea, China and the United States. Headquartered in Baoding, China, Yingli Green Energy has more than 7,000 employees and more than 10 subsidiaries and branch offices worldwide. Yingli Green Energy is publicly listed on the New York Stock Exchange (NYSE: YGE). For more information, please visit http://www.yinglisolar.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yingli Green Energy's control, which may cause Yingli Green Energy's actual results, performance or achievements to differ materially from those in the forward- looking statements. Further information regarding these and other risks, uncertainties or factors is included in Yingli Green Energy's filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

SOURCE Yingli Green Energy Holding Company Limited